SOLUTION: A house was built in 1995 and it was valued at $225,000. Each year the house goes up 3%. What is the equation giving value of house x years after 1995, and how much will the house

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Question 564306: A house was built in 1995 and it was valued at $225,000. Each year the house goes up 3%. What is the equation giving value of house x years after 1995, and how much will the house be in 2012?
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
Let +a+=+225000+
House is worth:
1st year:
+a+
2nd year:
+a+%2B+.03a+
+a%2A%28+1+%2B+.03+%29+
3rd year:
+a+%2B+.03a+%2B+.03%2A%28+a+%2B+.03a+%29+
+%28+a+%2B+.03a+%29%2A%28++1+%2B+.03+%29+
+a%2A%28+1+%2B+.03+%29%5E2+
4th year:
+a%2A%28+1+%2B+.03+%29%5E2+%2B+.03%2A%28+a%2A%28+1+%2B+.03%29%5E2+%29+
+a%2A%28+1+%2B+.03+%29%5E2+%2A+%28+1+%2B+.03+%29+
+a%2A%28+1+%2B+.03+%29%5E3+
-----------------
The equation is
+y+=+1.03%5Ex+
2012 is 17 years after house was built, so
the house is worth:
+y+=++1.03%5E17+
You could solve this directly with calculator,
or use logs
+log%28y%29+=+17%2Alog%28+1.03+%29+
Then you get +log%28y%29+ = some number
the, y = 10 raised to that number.
I don't have a calculator right now